Argentina Analysts Forecast 2025 Inflation at 23.3% with Economic Growth Rising

Argentina’s analysts predict 2025 inflation at 23.3%, a minor increase from last month. Economic growth forecasts rose to 4.8%. The government’s inflation-reduction strategy is critical amid ongoing austerity and IMF negotiations.

Analysts in Argentina forecast an inflation rate of 23.3% by the end of 2025, as revealed in the central bank’s recent market expectations survey. This figure represents a slight increase of 0.1 percentage points compared to last month’s prediction. Additionally, the analysts revised their economic growth outlook for 2025 upward by 0.2 percentage points to 4.8%.

The survey, conducted from February 26 to 28, involved 39 participants, including consultancies, research centers, and financial entities. The INDEC statistics agency is scheduled to release February’s inflation data on Friday, followed by growth figures for the last quarter of 2024 on March 19.

In January, the central bank reduced its benchmark interest rate from 32% to 29%, citing a downward trend in inflation. Monthly inflation rates fell to 2.2%, marking the lowest level since mid-2020. Meanwhile, annual inflation rates soared close to 300% early last year but have since decreased to approximately 85% in January. It was noted that sectors such as hospitality and utility bills experienced the most significant price increases.

In February, analysts estimated inflation figures for January would remain stable or rise slightly but expected a continuing downward trend throughout the year. Reducing inflation is a critical goal for the government of President Javier Milei, which has implemented strict austerity measures while seeking financial assistance from the International Monetary Fund to maintain positive economic momentum.

In summary, analysts anticipate that Argentina’s inflation will reach 23.3% by 2025, reflecting a slight increase from previous forecasts. The economy’s growth projection has also been modestly raised. The government’s commitment to lowering inflation continues as it engages in austerity measures and seeks IMF support. As economic data is released, the trajectory of inflation remains a priority for further monitoring.

Original Source: www.marketscreener.com